Český finanční a účetní časopis 2016(4):43-61 | DOI: 10.18267/j.cfuc.485

Non-audit services provision issues and their current development

Jekaterina Šmídová
Jekaterina Šmídová; katedra finančního účetnictví a auditingu, Fakulta financí a účetnictví, Vysoká škola ekonomická v Praze, nám. W. Churchilla 4, 130 67 Praha 3; <xboye01@vse.cz>.

Issues in relation to provision of non-audit services by statutory auditors to the audited entities start to be one of the most discussed topics among professionals on audit fields in 2016. The main reason which caused increase interest in these problems, is the entry into force of directive 2014/56/EU of the European Parliament and of the Council amending Directive 2006/43/EC on statutory audits of annual accounts and consolidated accounts and Regulation (EU) No 537/2014 of the European Parliament and of the Council of 16 April 2014 on specific requirements regarding statutory audit of public-interest entities and repealing Commission Decision 2005/909/EC. The Czech legislation has applied wide range of changes incurred by amendment of the Act No 90/2003, Act on Auditors, that entered into force 1. 10. 2016. The aim of the article is to remind or to describe to a reader the issue of non-audit services provision by statutory auditors to the audited entities and to present changes which are caused by amending European legislation. A structure of the article is based on the articles' goals. Initial part of the article is aimed to provide the explanation of fundamental definitions which are essential for the following explanation of the whole issue. The subsequent part summarizes opinions of opponents and proponents of the non-audit services provision. The summary contains the most popular mathematic models of auditor's independence as well as comprehensive ethical and psychological models and arguments. The following part of the article presents the overview of changes, which were applied by amended EU legislation, practical instruction manual and the explanation of several unclear points. These should help to a reader to familiarize his behavior in the new environment.

Keywords: Non-audit services; Auditor independence; Audit quality.
JEL classification: M42

Published: December 1, 2016  Show citation

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Šmídová, J. (2016). Non-audit services provision issues and their current development. Czech Financial and Accounting Journal, 2016(4), 43-61. doi: 10.18267/j.cfuc.485
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